The Nobel laureate who co-wrote ‘Why Nations Fail’ warns U.S. democracy won’t survive unless these two things change

Fortune

by Jake Angelo

February 22, 2026

AI-Generated Deep Dive Summary

Nobel Prize-winning economist Daron Acemoglu warns that U.S. democracy is at risk unless two key issues are addressed: economic inequality and job destruction caused by AI. In his latest remarks to Fortune, Acemoglu emphasized that while President Trump’s authoritarian tendencies have weakened democratic institutions, the broader structural problems in the country predate Trump. He argues that AI-driven job displacement could exacerbate existing wealth gaps and further destabilize democracy. Acemoglu suggests that traditional policies aimed at reducing inequality are insufficient and calls for measures like wealth taxes to address the growing disparity. Acemoglu’s concerns about AI are rooted in his long-standing research on how political and economic institutions shape prosperity. He highlights the growing job losses due to AI, with over 1.2 million layoffs reported in 2025—a 58% increase from the previous year—with many directly linked to AI technologies. He believes that prioritizing artificial general intelligence (AGI) over addressing these societal challenges is misguided and could lead to adverse social consequences. Acemoglu’s perspective contrasts with that of AI proponents like Adam Thierer, who argue that technological innovation will ultimately create new opportunities and jobs, similar to historical trends. The debate over AI policy has significant implications for business and the economy. While some see AI as a driver of future growth and competitiveness, particularly against global powers like China, Acemoglu warns that unchecked AI development could undermine democratic stability. His call for systemic changes to ensure equitable growth aligns with broader concerns about economic inequality and its impact on political systems. For businesses, navigating this complex landscape requires balancing innovation with social responsibility to avoid exacerb

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Originally published on Fortune on 2/22/2026